- SWFX traders are 55% bullish
- 57% of pending commands are to buy the metal
- The bullion opened at 1,238.43
- Upcoming Events: US CB Leading Index
US building permits advanced more than expected whereas homebuilding activity weakened in January, official figures revealed on Thursday. The Commerce Department reported building permits rose 4.6% to a seasonally adjusted annual pace of 1.29 million in January, following the previous month's upwardly revised 1.23 million units and surpassing analysts' expectations for a 1.23 million unit rate. The increase caught markets by surprise, as the figure reached the highest level since November 2015, suggesting solid growth in starts in the middle of 2017.
Meanwhile, housing starts declined 2.6% to an annualized rate of 1.25 million units in the same month, following December's upwardly revised reading of 1.28 million, whereas economists expected them to increase to a 1.23. Analysts suggest that the housing market recovery is likely to be sustained by strong labor market, which supported household formation. Separately, the Philadelphia Federal Reserve said its Manufacturing Index jumped to 43.3 points in February, the highest level in 33 years, driven by a jump in new orders, which climbed to 38.0 from 26.00. Data also showed the Employment Index fell to 11.1 from 12.8, while the Business Outlook Index for the next six months slid to 53.5 points.
Upcoming events: US CB Leading Index
In the second half of the day's trading session, there will be one minor data release in the US, as the US CB Leading Index is set to be released at 15:00 GMT.
Gold remains above 1,235 level
Daily chart: The yellow metal traded rather flat on Friday morning, as it found support in the monthly R1, which is located at 1,237.68. The bullion retreated to that level after it stopped and reversed its surge in the second half of Thursday's trading session. Gold has two possible future scenarios. Either the bullion finds enough strength in the support level to rebound and approach the 1,245 level, or the yellow metal will fail at that and begin a move lower. A move lower would result in a fall to the weekly PP, which is located at 1,232.24.Daily chart
Hourly chart: The hourly chart reveals that there is a still an unconfirmed ascending channel pattern, which might guide the rate higher. However, traders are advised to watch the yellow metal's price to see whether a rebound actually occurs. In addition, the hourly chart shows that before the weekly PP is located the 55-day SMA, which is located at 1,233.50. That level of significance might provide support to the metal.
Hourly chart
SWFX traders remain bullish
OANDA Gold traders have decreased their bullish outlook on the yellow metal, as open positions were 61% bullish on Friday, compared to 64% previously. Meanwhile, traders of SAXO bank have once more decreased their bullish outlook, regarding the yellow metal, as 59.30% of open positions are bullish, compared to 61.49% yesterday.